Megaport [ASX:MP1] released its activities and operations report for the quarter that ended on 30 September 2022.
While MP1 reported its second consecutive quarterly EBITDA profit in 1Q23, the market wasn’t impressed.
MP1 shares were down nearly 20% in late afternoon trade on Wednesday.
Year to date, MP1 shares are down 65%.
Spurce: tradingview.com
Megaport’s 1Q FY23 results
The financial highlights for the September quarter (Megaport also changed its reporting currency to US dollars at the start of the quarter):
- Revenue up 5% quarter-on-quarter (QoQ) to US$23 million
- Customers up 2% QoQ to 2,700
- Total ports up 1% QoQ to 9,606
- Total services up 3% QoQ to 28,326
- Receipts from customers up 14% QoQ to $25.7 million
- Cash at hand at the quarter’s end of $44.9 million
Source: MP1
While Megaport reported its second consecutive quarterly EBITDA profit, the connectivity business ended the September quarter with a negative free cash flow of about US$6.5 million.
Having started the quarter with US$56.9 million in cash and cash equivalents, Megaport saw that whittled down to US$44.9 by the quarter’s end.
MP1 CEO Vincent English commented on the September quarter result:
‘With strong revenue fundamentals, and proven operating leverage built into our model, Megaport has delivered our second quarterly EBITDA profit consecutively. This is a significant team achievement as we continue to stay focused on our journey to profitability and cash generation. We have aligned our product suite with globally standardised port pricing and capacity. This has enabled a portion of our existing customer base with greater port capacity and positioned future customers with greater capacity the moment they join our platform.’
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